Why you should not buy properties in poor neighbourhood?

[Good-Guy]

Investing money in a property is a quite common thing for many investors. In the past few decades, many people have made tons of money by investing in the real estate market. This has led many people to invest money in a poor neighbourhood, despite the fact that they could have invested money at a much better place. So, what are some of the reasons why you must never invest money in a poor neighbourhood?

This might have an impact on your future investments

When you invest money in a property located at a poor neighbourhood, the chances are that the value of property may not increase that much. There is a saying that goes, "You get what you paid for". This sounds true when we talk about real estate investments.

Properties located in poor neighbourhoods may have legal problems

There are many different kinds of properties that exist in my own country. These properties are located in poor neighbourhood and there are many people who may be tempted to buy a good looking property, just because the prices of properties are much lower comparatively. However, what most people do not realise is the fact that such properties may have documentation and legal issues in most of the cases in our country. So, what are some other reasons you should not buy properties in poor neighbourhoods?

 

[moonchild]

Buying a property in a poor neighborhood is not advisable because it'll be hard to monetize such properties, must people living in such areas may not be able to afford them and also poor neighborhood cab be laden with crimes like petty thief, house burglary and other small time stuffs you don't want to be involved in.

Instead of a house you can invest in a shop chain, because most of these areas can be business hotbed where you'll be able to make money renting out shops to people around and it'll be more profitable than owning a house in such places.